Summary
Carrier Global Corporation (CARR) has filed an 8-K report detailing the entry into a new $2.5 billion senior unsecured revolving credit agreement, effective December 20, 2024. This new five-year facility replaces prior credit agreements, including a $500 million 364-day revolving credit facility and a $2 billion five-year revolving credit facility. The new credit agreement is designed to support the company's general cash requirements and its commercial paper program, offering flexibility with borrowings available in both U.S. Dollars and Euros. This refinancing indicates a proactive approach by Carrier Global to manage its liquidity and financing structure. The terms are largely similar to previous agreements, suggesting stability in the company's credit arrangements. Key features include interest rate options based on Term SOFR or Alternate Base Rate for USD borrowings and Adjusted EURIBOR for Euro borrowings, all subject to a ratings-based margin. The agreement also includes standard covenants, a consolidated leverage ratio financial covenant, and customary events of default, aligning with typical investment-grade financing practices.
Key Highlights
- 1Carrier Global entered into a new 5-year, $2.5 billion senior unsecured revolving credit agreement.
- 2The new agreement replaces existing 364-day and 5-year revolving credit facilities.
- 3The facility is intended to support the company's general cash requirements and commercial paper program.
- 4Borrowings can be made in either U.S. Dollars or Euros.
- 5Interest rates for USD borrowings are based on Term SOFR or Alternate Base Rate, plus a ratings-based margin.
- 6Euro borrowings will bear interest based on the Adjusted EURIBOR Rate plus a ratings-based margin.
- 7The agreement includes customary covenants, a consolidated leverage ratio financial covenant, and events of default.